B-CORP CERTIFICATION: A MARKETING RESEARCH STUDY �(Busboys�& Poets, Washington, D.C.)�

         

BY,  LAUREN  ZAHRINGER    

SUBMITED  SPRING  2011  MARYMOUNT  MANHATTAN  COLLEGE  

 

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Table of Contents 1. Managerial Summary…………………………………………………................................... Pg. 2 2. Statement of Research Purpose and Objective………………………………………….. Pg. 2 3. Research Design and Methodology………………………………………………………... Pg. 2 3.1 Questionnaire Design………………………………………………………………………...... Pg. 2 3.2 Sampling Plan………………………………………………………………………………….. Pg. 3 3.3 Data Collection and Data Entry……………………………………………………………… Pg. 3 4. Analysis Results………………………………………………………………………………. Pg.3 5. Recommendations……………………………………………………………………………. Pg.3-4 6. Tables and Figures…………………………………………………………………………… Pg. 5-6 7. Appendices…………………………………………………………………………………….. Pg. 6-9 7.1 Questionnaire............................................................................................................................... Pg.6-7 7.2 Codebook……………………………………………………………………………………….. *Attached 7.3 Hypotheses and Operational Definitions …………………………………………………… Pg. 8 7.4 Detailed Secondary Research………………………………………………………………… Pg. 9

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1. Managerial Summary The main topic of this research is the affect of a businesses marketing mix on customer

loyalty. For a business a successful marketing mix creates customer interest in goods or services, builds strong customer relationships, and creates value for their customers and for themselves. This project will explore whether being a certified Benefit Corporation (B Corp) adds value to a business’s marketing mix, specifically researching the B Corp certification’s impact for a local coffee shop, addressing whether it creates value, satisfaction, or loyalty for the coffee shop’s customers.

B Corps are less a legal entity (Archibald, 2007), such as a C Corporation or an S Corporation, but more so a certification of particular business practices and activities that are socially and environmentally beneficial. In a sense a B Corp certification is for sustainable businesses what LEED is for green buildings. According to the B Corp website, a B Corp certification enhances and adds value to a business by the business being recognized as a leader, and by differentiating the business’s commitments via a third party certification. But at the consumer level, just how powerful is a B Corp certification?

Does having a B Corp certification enhance a business’s marketing mix by solidifying a commitment to social causes and in turn increase customer loyalty? If a business enhances a community and is committed to sustainable practices without a B Corp certification, will customer loyalty and brand value increase upon gaining a B Corp certification? This research study will examine Busboys and Poets, a local restaurant and coffee shop in Washington, DC that is a certified B Corp. Specifically the question driving this research is: Does the B Corp certification increase Busboys and Poets’ customer loyalty, and perception of brand value?

An analysis of the data collected is unable to provide statistical significance for observed results regarding the aforementioned objective. Most likely the error in the data collection is a result of a too small sample size. Nevertheless, this research was able to bring to the attention of respondents information they were unaware of, such as Busboys and Poets’ B Corp certification and what it means, as well as thinking about business’ role in addressing climate change, and being accountable to all stakeholders. As a place for ideas, and conversations, inspiring interaction regarding these ideas was beneficial, and potentially increased customer awareness. 2. Statement of Research Purpose and Objective

There are two main objectives for this study. The first is to find out if Busboys and Poet’s tangible B Corp features, fair-trade market, space for community events, and independent bookshop within restaurant, are a factor in customers’ decision to come to restaurant. The second objective is to learn about Busboys and Poet’s actual market, on the terms of demographics, and opinions relevant to themes of sustainable development. A survey will be administered to a random sample of one hundred customers in order to collect data for analysis and fulfill research objectives.

Objective 1 Measure the factors in customers’ choice to go to Busboys and Poets. Objective 2 Measure customers’ opinions regarding Business’ relationship to

society. 3. Research Design and Methodology 3.1 Questionnaire Design

The questionnaire was designed to ensure accuracy, and effectiveness in collecting the necessary data to test the research hypotheses. Questions were created on the basis of operational definitions of hypotheses. Data for this descriptive research was collected with closed response questions in the form of likert scales, and multiple-choice questions.

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3.2 Sampling Plan To ensure that the sample is random, all customers of busboys and poet’s will have equal opportunity to participate in survey. A sample of 100 customers will be taken. The data collection will occur onsite at the Busboys and Poets 14th Street location in Washington, DC. 3.2 Data Collection and Entry

The researcher will distribute surveys to customers at the restaurant who will complete the survey on the spot. The researcher will ask respondents if they are interested in filling out the survey. If respondents are interested and wish to participate on their own will, they will be given the survey. At this point the researcher will leave the immediate area, so as to ensure for the survey taker’s relaxed and natural state of mind that is free from pressure. The researcher will return after a few minutes to collect the completed surveys. 4. Analysis Results 4.1 Research Question 1 Question 1 Do customers of Busboys and Poets go to Busboys because of the tangible

features of its fulfillment to its B Corporation Status?

Operational Definition

Customers come to Busboys and Poets because of factors attributable to B-corp certification. When asked to respond to the prompt “I come to busboys and poets because I like…” a 60% majority of respondents will indicate one or more of the three B Corp factors included in the answer options. It is expected that a majority will indicate one or more of the factors as a reason for why they go to Busboys and Poets on the basis of its popularity, and owner opinion.

Hypotheses H0: Q7E + Q7G + Q7H ≥ 1 HA: Q7E + Q7G + Q7H < 1

Result 66% of respondents indicated that one or more B Corp factors were a reason for why they come to Busboys and Poets.

Statistical Significance

Are the above results indicative of Busboys and Poets customer population, or did observed results occur as a result of chance? a chi-square test was used to test for statistical significance. The results of the chi-square test were

Test Statistics BCORP

Chi-square 14.448a df 2 Asymp. Sig. .001

a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 22.3.

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With 2 degrees of freedom at the .01 significance level the chi-square table value is 9.21034. Since the calculated chi-square is greater than the value in the table, the null hypothesis is rejected and it is concluded that the predictions made were incorrect, and this observed result is not statistically significant to make any conclusions for the population.

4.2 Research Question 2 Question 2 Do customers of Busboys and Poets wants Businesses to be socially and

environmentally responsible? Operational Definition

The expected response is that customers do want businesses to be environmentally and socially responsible. Customers are already present at a business that is such, and therefore, it is expected that they have considered this idea before. When asked to indicate agreement with the statement “I want businesses to be socially and environmentally responsible” on a scale of 1-5, a 60% majority will respond 4 or higher.

Hypotheses Test

H0 : Q11 > 3 HA : Q11≤ 3

Result 97% of respondents indicated agreement on scale of 1-5, of 4 or higher. Statistical Significance

Since this is a hypothesis of frequencies, a chi-square test is used to test for statistical significance of the observation.

Test Statistics

want businesses to be socially and

environmentally responsible at a local level Chi-square 17.330a df 1 Asymp. Sig. .000 a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 48.5.

With 1 degree of freedom at the .01 significance level the chi-square table value is 6.63. Since the calculated chi-square is greater than the value in the table, the null hypothesis is rejected and it is concluded that the predictions made were incorrect, and this observed result is not statistically significant to make any conclusions for the population.

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5. Recommendations Most likely do to insufficient sample size, it is not possible to confirm that Busboys and Poets have seen a return on their investment in their certified Benefit Corporation status at the consumer level regarding customer loyalty. However, factors to be considered are the newness of the Benefit Corporation status, general lack of customer awareness, and the relatively recent growth in societal awareness, regarding climate change, and consumers’ awareness of knowing their ability to influence and address climate change through their customer choices. Nevertheless, it is recommended that the objectives of this research be considered again in the future, with a larger sample, of 200 customers. 6. Tables and Figures

31%  

21%  

48%  

Percentage  of  Customers  who  Indicated  each  of  the  following  three  b  corp  attributable  factors  as  a  reason  

for  why  they  go  to  busboys    Community  Event   Fairtrade  Market   Bookstore  

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DETAILED SECONDARY RESEARCH

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